What happens to any remainder in the Trust if the beneficiary dies before it is used?
Trusts are often set up with the goal of spending the entire principal and earnings by the time the beneficiary dies. However, the beneficiary may die prematurely or if the trust account is quite large, funds may remain after the beneficiary dies. How the remaining funds are used depends on the type of trust and the conditions set forth by the donor in the Joinder Agreement. Special Needs Trusts do not require that Medicaid be reimbursed for publicly funded services that the beneficiary may have used during his lifetime. The grantor can designate another person, several people or a not for profit organization like CCT to receive some or all of the remaining funds. The Pooled Disability Trusts do require that the state be reimbursed from remaining funds in an account or designated to a not for profit organization like CCT. The pay back is for publicly funded medical expenses incurred in providing services to the person with a disability. An option, other than paying Medicaid, is to desi
